Max Kingsley-Jones/LONDON
Three Star Alliance members - Lufthansa, Scandinavian Airlines (SAS) and Singapore Airlines (SIA) - are linking their cargo businesses, but the move is being undertaken independently of the alliance grouping.
SIA is forming the venture with Lufthansa Cargo and SAS Cargo under the provisional title "New Global Cargo" - a more definitive brand name is expected within 12 months. The cargo arms of the three airlines are increasing co-operation to create a "seamless carriage" of cargo products throughout their combined cargo network. There are no plans for additional partners to join the venture in the short term.
The formal agreement followed a year-long feasibility study by the three airlines into how to achieve better integration in the air cargo sector. The three partners are undertaking a two-year harmonisation programme to set up common infrastructures for IT, product, handling and sales. Once the basic partnership strategy is established, the three airlines will study the integration of their networks. "In a team effort over the next two years, we will establish innovative standards, focusing our efforts on e-commerce and gradually integrate our skills," says Lufthansa Cargo chairman, Stefan Lauer.
Lufthansa Cargo is a standalone division of the German flag carrier, operating 10 Boeing 747-200 freighters and 10 Boeing MD-11Fs (with four on order). SIA's cargo arm has eight 747-400Fs in operation and two on order. SAS Cargo, which is splitting from its airline sister, relies mainly on belly cargo of its passenger fleet, and wet-leases an MD-11F from Lufthansa Cargo for services to Hong Kong. SAS's belly cargo capacity is to rise by 40% over the next couple of years as Airbus A321s and A330/A340s arrive.
Although the three partners are linked through Star, the cargo venture is being undertaken separately. "The Star Alliance covers passenger operations, although there is a cargo agreement between some partners," says SAS Cargo. "New Global Cargo is not linked to Star-it has different interests from the passenger side."
Source: Flight International
